Claude Resources expands debt facilities to $50-million

Claude Resources Inc. has expanded its
current debt facilities with its existing bank, Canadian Western Bank,
and in addition has come to an agreement with Crown Capital
Partners Inc. (CCP) for a debt facility of $25-million.

CWB financing summary

The company has expanded its current debt facilities to $25-million, of
which $8.6-million is currently drawn. The current $8.6-million
consists of leases, demand loans and a line of credit. The debt
expansion is structured as shown in an attached table.

Interest rates are both fixed and floating, and carry a weighted-average
rate of approximately 4.5 per cent.

CCP financing summary

The CCP offering consists of a five-year $25-million debt facility,
which carries an interest rate of 10 per cent of the outstanding
principal, compounded and payable monthly. Principal payments, due to
begin in 2014, are payable monthly. The facility includes 5.75 million
warrants at a strike price of 70 cents and can be exercisable at any time
from the closing of the transaction to five years following the closing of
the transaction. The issuance of warrants is subject to approval from
each of the Toronto Stock Exchange and the New York Stock Exchange.
Closing of the CCP financing is subjective to customary conditions
precedent.

Neil McMillan, president and chief executive officer, stated: "We are pleased to have both
CWB and Crown Capital demonstrating their confidence and support of our
business plan. We are satisfied with our blended cost of capital of
approximately 8 per cent. It represents the confidence our debt
providers have in our ability to manage and retire the debt upon
maturity. Our track record over the past 21 years has certainly helped
us build a good relationship with CWB and Crown. The company expects to
be able to grow the Seabee gold operation production by 10 to 15
per cent compounded annually over the next five years, and we are happy to
have CWB and Crown as partners in that growth."

Use of proceeds

The company believes that its new capital structure will advance the
company over the long term without penalizing shareholders through
major equity financings. The new debt facilities are intended for the
retirement of the $9.8-million debenture due in May, 2013, for expansion
capital at the Seabee gold operation and for general working capital
purposes. The company is confident that it can efficiently service and
repay the debt facilities through growing operating cash flows from the
Seabee gold operation.

About Crown Capital Partners

Crown Capital Partners is a leading provider of growth capital to middle-market companies throughout Canada. Crown Capital Partners focuses on
providing specialized financing solutions including structured equity,
subordinated term and bridge loans for acquisitions, management
buyouts, growth financings, and recapitalizations.